Portland, Maine (Platts)--10Sep2007

Nevada regulators on Friday rejected a proposal to stop approving new
coal-fired power plants and adopt a carbon dioxide emissions standard that
essentially would bar conventional coal-fired plants from being built.

     Independent power producers, investor-owned utilities, coal companies and
the state's Republican governor, Jim Gibbons, urged the Nevada Environmental
Commission to turn down Western Resources Advocates' petition to adopt an
emissions standard that no new power plants in Nevada would release more than
1,100 pounds/MWh of carbon dioxide, a level California regulators set that
conventional coal-fired plants cannot meet.

     "It is now clear to me from the hearing that [the Nevada Department of
Environmental Protection], under pressure from the governor, has clearly put
approval of the all the air permits for all the coal plants on a fast track
for approval by the end of this year," said Charles Benjamin, a WRA attorney.
"I think our focus now is on gearing up for court fights on the permitting of
these [proposed] plants."

     The issue is key in Nevada, where LS Power and Dynegy plan to build a
1,590-MW coal-fired plant in Ely, Sierra Pacific Resources is proposing
another 1,500-coal-fired plant in Ely and Sithe Global Power is developing a
750-MW plant near Mesquite. All the developers opposed WRA's proposal.

     "The Petition before the Commission would harm Nevada's ability to meet
growing electric demand, would delay and subdue investment in major
transmission projects which are needed to advance other generation projects --
particularly renewable energy projects in rural Nevada -- and would not result
in a meaningful reduction in [greenhouse gas emissions] emissions," LS Power
told the commission.